With the world rapidly changing the way it works, several things are coming into the limelight. The most well-known of these stems from something that we now call the blockchain. The blockchain is an extremely secure network that is used as a medium through which several new creations are being shown to the world. The creation of cryptocurrency came from this, and so did NFTs, and whether we like it or not a good deal of the future also depends on this. NFTs have already been used for several reasons and some, if not most, were created to use as a means of marketing. This is also the reason why NFTs are so important as well. Their diversity allows them to make themselves usable as much as possible. NFTs can be used in so many ways, even in the most mundane way possible To ensure absolute security and safety, NFTs are the best choice.
Now NFTs have been used in different markets. The first of them was the art market where artworks were going for massive prices and the DAOs and the companies producing these NFTs were skyrocketing. These NFTs were displayed and could be purchased in an NFT marketplace using a simple process. Following this, the antiques and collectibles market took a good dive into the digital domain as well. With so many changes that are occurring in the world, it is only natural that NFTs solidify their very existence. NFTs have also been involving themselves in ways that one would have never expected. For example, they have managed to establish their dominance in the sports sector by creating NFT sports games and even NFT rookie cards that have massive value in the market. That all being said, this is far from the end because NFTs have more uses than one can fathom and some of it might have to do with IP rights as well.
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IP and where NFTs play an important role
To prevent any inaccurate information,avoid any of the “best NFTs projects to invest in” until you have a proper idea of IP. It is important to understand what IP is. IP, in other words, stands for intellectual property rights. To be exact, it is used to ensure that the NFTs that are being created are exclusive and if there is a good possibility that these NFTs could be copied, and not in a literal sense but rather in a shrewd way where one can create similar artwork and replicate the existing content of another artist. That being said, there are a few IP rights that one has to be aware of, and they are:
So these are basically the 3 things that one has to adhere to as this might affect the overall value or might affect the entirety of the NFT. With that being said, the question that most people have regarding this is how these IP rights can be implemented and what impact it brings to the mix.
Introducing IP rights is something that is rather important when considered on a large scale, especially patented ones. A patent is usually applicable to 2 different categories and they are either design-based or utility based. More often than not, it is the utility that has the patent issued and there is also a problem where when the particular NFT is sold that the customer who buys it does not get control over the patent for the utility or design of it. This is despite the fact that these NFTs belong to the person who has purchased them. So this makes it a big issue. One must definitely go through the entire details when it comes to the purchase of particular NFTs as there is a good chance that it might have been overlooked. So once again, there is an emphasis on the factor.
More on IP rights
Having knowledge regarding this is quite important, primarily because these NFTs while sold to different people, do not mean that they have all the rights. This is something one better familiarise themselves with. While this might sound confusing, there are certain things that need to be taken into consideration. The item or the NFT that is being bought is solely bought for what it is and while you would be the only one to own it, it does not mean that the entire series of artworks or all the other artworks are under the ownership of that particular person. Apart from all this, it is important that one familiarizes themselves with the different kinds of licensing. This is because these licenses differ and come in 2 types; commercial NFT licensing, and personal NFT licensing.
- Personal licensing: This is basically the kind of license that makes it clear that you have only limited display rights and are not permitted to commercialize the artwork in any manner. A buyer doesn’t have copyright in the NFT acquired unless particular terms and conditions allow certain rights. The privilege of being listed on the blockchain as the true owner of the NFT (or, more precisely, having a specific wallet listed) and the ability to proclaim to the world that they are the proud owner of an NFT are typically the only things that are purchased.
- Commercial licensing: This is the actual use of a commercial license. A creator can transfer ownership and management of the NFT’s intellectual property to a buyer while still keeping the right to commercialize the NFT. In some commercial licensing structures, royalties must be paid by the purchaser to the original NFT developer. This percent, which is typically calculated per sale, is frequently set by the original creator. Some creators may not receive royalties when their work is sold under the opt-in royalty model because buyers can choose the royalties they want to pay to an NFT project.
IP rights are a problem, and not being educated as to how the entire thing works will, in turn, affect the entire result. There are 2 different ways in which licensing can be done and these are the only 2 ways in which this can be handled. The first is the personal license and the second option is to commercialize it. So the bottom line is one has to be well aware of IP rights and what one is entitled to.
Read more: How to Invest in Non-Fungible Token (NFT)?